Moving from Transactional to Transformational HR

Transformational HR
Transactional, or traditional, HR is concerned with the day-to-day mechanics of keeping an organization running. It involves a variety of repetitive, administrative tasks. Transformational HR takes a step back from routine, and focuses on strategies for aligning HR management with an organization's goals. It involves expanding the traditional role of HR. Core tasks for HR managers typically relate to

recruitment interviews managing conduct discipline company policy handling inquiries

Transformational HR expands the traditional HR role into the arena of management, so it becomes a tool to develop business interests and growth. The aim is to turn HR management into a force that can help an organization reach its business objectives and instill those objectives in employees. This enables HR professionals to create value for the organization as a whole. The needs of modern businesses have changed due to factors such as rapidly advancing technology, more informed customers who want a broader range of choices, and more intense, global competition. In this environment, transformational HR can play a key role in helping an organization stay competitive. It's important to note that transformational and transactional HR aren't mutually exclusive. Elements of both are required for the running of a successful organization. So rather than dispensing with routine administrative tasks, HR departments need to integrate these carefully with more strategic initiatives. A successful HR department will use transactional functions to support transformational goals, which in turn should align with the strategic business goals of the organization.

Tactics for becoming transformational

HR can perform a variety of transactional tasks in a transformational way, so that administrative work supports overall strategic goals. For example, it can use key metrics, which the HR department usually gathers, to inform strategic business decisions. It can also improve employee

morale and motivation, in turn making it more likely that employees will achieve an organization's goals. HR departments can use key metrics to benefit a business in a transformational way. An HR manager can present data to management that influences business decisions and helps reshape the organization. As well as furthering organizational goals, this can help highlight the value of the HR department. Recruitment is a traditional HR duty, but the recruitment tasks can be aligned to the strategic needs of an organization. This is done by focusing each step advertising, reviewing resumes, interviews, and contract negotiations on recruiting particular talent rather than simply someone fitting a generic job description. HR is in the position to know which skills are needed where in the company, and what sort of remuneration is needed to retain those skills. Employee turnover goes hand in hand with HR recruitment duties, but it is also concerned with employee satisfaction. Traditional HR plays a reactive role addressing problems with employees. However, transformational HR can determine the average length of employment, reasons for leaving, factor in the cost of rehiring, and develop a strategy to identify and retain talent. Productivity can be determined by the profit employees generate, given their remuneration and value to the company. It also encompasses absenteeism and the cost of various organizational activities like meetings and conferences. HR is able to formulate strategic plans on how to maximize departmental productivity by repositioning employees, as well as by tackling problems of employee morale and streamlining unprofitable organizational pastimes. HR also has the ability to improve employee morale and motivation by performing employeerelated transactional functions in a transformational way. In turn, this can boost productivity and help an organization achieve its goals by providing it with a dedicated workforce. Using the standard transactional tools, HR can gauge how satisfied employees are by monitoring and assessing their attendance, feedback, and overall mood using surveys and interviews. Focusing on these issues will help the organization develop its strengths through its people by keeping them motivated and productive, and give it a competitive edge. HR will then be responsible for growing the organization's pool of talent to enable it to reach organizational goals.

Preparing for transformational HR

Moving into a transformational role means having to balance new tasks with the traditional HR duties. This requires careful planning and scheduling. It's vital to keep a balance between organizational needs, transactional duties, management requirements, and employee needs. Three main tactics can help an HR department prepare itself and the broader organization for a shift to transformational HR:

demonstrate an increase in scope and value When moving to a transformational HR role, a vital task is to market the ability of the HR department to increase its scope and value for an organization. Some of the ways HR can do this are by compiling reports and suggestions for strategic actions, demonstrating problem-solving abilities, and demonstrating the ability to work effectively with other teams and departments. increase transactional efficiency HR departments are often very busy and it isn't always viable just to add extra transformational tasks to the existing workloads of HR personnel. Instead, it's important to improve the efficiency of an HR department's transactional work. This frees up time for focusing on transformational initiatives. Some examples of ways to improve efficiency are better scheduling and to simplify or automate processes. get buy-in from management To support a shift to transformational HR, it's vital that an HR department secures the support of one or more high-ranking managers. This goes hand in hand with demonstrating an increase in the value and scope of HR work which can convince managers of the department's capacity to play a more central role. Without management endorsement, an HR department is unlikely to be given the opportunities or resources it needs to contribute to the strategic direction of an organization.

Transactional HR incorporates all the traditional HR duties and is largely administrative and reactive. Transformational HR involves proactively supporting and helping define the organization's strategic goals. Tactics that an HR department can use to prepare for the shift to transformational HR include increasing the scope and value of HR activities, making transactional work more efficient, and securing buy-in for the change from management. Course: HR as Business Partner: From Cost Center to Strategic Partner Topic: Transactional vs. Transformational HR